MACD=Moving Average Convergence / Divergence.
TOOL #1 in your Profit Kit is B.U.T., “BUY UP TO”.
TOOL #2 in your P-Kit A.C.M.E. “AFTER MARKET CLOSE EXIT”.
TOOL #3 will be M.A.C.D., “Moving Average Convergence / Divergence.”
The BLUE BARS are the Histogram that represent the numerical value of the MACD. That same value is the black line. Same for the BLUE BARS. The interaction between the BLACK and RED (9 day Moving Average of the BLACK line), make MACD function like an Acceleration Meter. The steepness of its upcurve or down curve shows you how intense the G-Force is and whether its Increasing or Decreasing.
The MACD is figured on the difference between the 12-day Exponential Moving Average and the 26-day Exponential Moving Average.
Exponential Averages move faster than Simple moving average, so things can change in a hurry.
Watching the changes in acceleration is often a first hint before price starts moving, for or against you.
With three (3) specific values in MACD, you can watch them for interaction to give you clues and hints about what may come next. Now that you know what it is, watch it for a while, and we will cover how to use it effectively as part of your Profit-Kit.